The world’s largest fund manager BlackRock has recruited the help of the FTSE Group to create a new index that allows investors to avoid coal, oil and gas companies.

The new index is believed to be the first of its kind to specifically exclude fossil fuel companies, the FT reported today.

Those likely to be excluded from the indices include FTSE 100 index stalwarts BP, which is one of the largest oil and gas producers in the world, and global coal miner BHP Billiton.

Bad bet: Climate change campaigners are trying to convince investors fossil fuel companies will become a bad investment in the future

In contrast, those companies that are likely to be included in the index include tech giants such as Apple, Google and Microsoft as well as large pharmaceutical firms such as Johnson & Johnson and Roche.

It comes amid claims from environmental groups that fossil fuels do not just contribute to global warming but, long term, also pose a risky financial investment given tougher government efforts around the globe to tackle climate change.

Several indices have already been created specifically to cover companies that work in renewable energy or water management groups.

Three years ago the think-tank, CarbonTracker published a report which referenced what it called the ‘carbon bubble’.

It found that more than $670billion (£398billion) is invested annually in fossil fuel assets which could plummet in value if governments around the world attempt to further limit the impact of climate change.

US oil group ExxonMobil issued two reports in March looking at the impact of climate change policy on its business. It rubbished the idea that tougher regulations to cut carbon emissions would leave many of its assets ‘stranded’, or unable to be exploited profitably.

But ExxonMobil’s conclusions were contradicted last week by the European financial services group Kepler Cheuvreux which release a report that suggested the fossil fuel industry could lose up to $28trillion in gross revenues over the next 20 years were governments to finally reach a meaningful deal on climate change.

So far, only a handful of smaller funds have taken the decision to sell out of fossil fuel holdings. But the Norwegian government is currently evaluating whether its huge oil fund should do so, a move which would likely create aftershocks around the world.

The new investment model has already prompted growing interest from investors keen to understand the risks of fossil fuel holdings, Kevin Bourne, a FTSE managing director told the Financial Times.

“This is one of the fastest-moving debates I think I’ve seen in my 30 years in markets,” he said.

The US led environmental campaign against fossil fuels investments has been modelled on the 1980s anti-apartheid divestment movement.

So far several small colleges and endowments have sold their fossil fuel holdings.

Others including Harvard University have resisted pressure to do so but it is hoped the creation of the FTSE index will help broaden the appeal of the existing campaign.

The Natural Resources Defense Council, a US environmental charity, has led the push to design the index and has provided enough seed capital for BlackRock to launch a tracker fund based on the new benchmark.

“So far it’s been relatively niche players that have divested and that is why this launch is game-changing,” said Peter Lehner, NRDC executive director.

“What this aims to do is bring the opportunity for fossil fuel-free investing mainstream.”